Saudi PIF Close to Buying Stake in Starbucks Middle East

Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
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Saudi PIF Close to Buying Stake in Starbucks Middle East

Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)
Starbucks coffee shops are popular in the Gulf region and the Middle East. (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) has been shortlisted to buy a stake in the Middle East, North Africa, and central Asia Starbucks franchise held by Alshaya Group, revealed sources.

The Starbucks franchise has several hundred outlets in 14 countries across the Middle East, Russia, and central Asia.

Last year, Kuwait-based Alshaya Group, the region's leading brand franchise owner, hired JPMorgan to sell a significant minority stake in the business.

The sources said it could sell up to 30 percent, generating $4 billion-$5 billion.

The PIF, which manages over $600 billion of assets, Alshaya, and JPMorgan declined to comment to Reuters.

The PIF is among the bidders that have made it to the next round as the sale process nears its final stages, the source said.

Several private equity bidders were also in the race, including CVC Capital Partners and Brookfield, but it was not immediately clear if they had been shortlisted.

The two sources said that Abu Dhabi state fund Mubadala Investment Co and Abu Dhabi state holding fund ADQ are no longer in the race.

Mubadala declined to comment, while ADQ did not immediately respond to a request for comment.

One source said funds raised could be used towards other businesses Alshaya owns and that the company's valuation is attractive, making the sale of a stake compelling.

The privately held Alshaya Group says it is the oldest company in Kuwait, first registered in 1890. It runs franchises including H&M, Mothercare, Debenhams, American Eagle Outfitters, and Victoria's Secret.



Syria to Receive Electricity-generating Ships from Qatar, Türkiye

FILE PHOTO: A view shows electricity pylons in Kiswah, Damascus suburbs, Syria September 8, 2021. REUTERS/Yamam al Shaar/File Photo
FILE PHOTO: A view shows electricity pylons in Kiswah, Damascus suburbs, Syria September 8, 2021. REUTERS/Yamam al Shaar/File Photo
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Syria to Receive Electricity-generating Ships from Qatar, Türkiye

FILE PHOTO: A view shows electricity pylons in Kiswah, Damascus suburbs, Syria September 8, 2021. REUTERS/Yamam al Shaar/File Photo
FILE PHOTO: A view shows electricity pylons in Kiswah, Damascus suburbs, Syria September 8, 2021. REUTERS/Yamam al Shaar/File Photo

Syria will receive two electricity-generating ships from Türkiye and Qatar to boost energy supplies hit by damage to infrastructure during President Bashar al-Assad's rule, state news agency SANA quoted an official as saying on Tuesday.
Khaled Abu Dai, director general of the General Establishment for Electricity Transmission and Distribution, told SANA the ships would provide a total of 800 megawatts of electricity but did not say over what period.
"The extent of damage to the generation and transformation stations and electrical connection lines during the period of the former regime is very large, we are seeking to rehabilitate (them) in order to transmit energy,” Abu Dai said.
According to Reuters, he did not say when Syria would receive the two ships.
The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Assad's rule to try to increase the flow of humanitarian assistance.
The exemption allows some energy transactions and personal remittances to Syria until July 7. The action did not remove any sanctions.
Syria suffers from severe power shortages, with state-supplied electricity available just two or three hours a day in most areas. The caretaker government says it aims within two months to provide electricity up to eight hours a day.